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The Street
The Street
Business
Daniel Kline

Royal Caribbean Adds Something Carnival Doesn't Offer (Norwegian Does)

A cruise has more moving parts than most vacations. If, for example, you hope to take your family to Walt Disney (DIS) World, the theme park does not move. That means that if your flight gets delayed, that might be a hassle, but it won't mean you miss your vacation.

Disney also offers all sorts of packages because it controls not just its theme parks but the on-property hotels as well. The Mouse House makes booking a package -- airfare, hotel, theme-park tickets, and anything else you might need -- very easy.

Travel agents can do that for Royal Caribbean (RCL) (Carnival (CCL) and Norwegian Cruise Line (NCLH)). But Royal Caribbean itself has not offered packages. It has an airfare booking service, Air2Sea, but it did not offer a way to book hotels.

That may seem like a small thing, but the various Facebook groups devoted to Royal Caribbean -- groups filled with frequent cruisers -- contain an endless array of posts asking about where to stay near various ports. 

It's not a simple question because some hotels near the various cruise ports cater to cruise travelers by offering shuttles to the ports, rental car parking at low (or included) prices, and late checkout to accommodate boarding times. 

Now, Royal Caribbean has launched a new service that will solve this problem for cruise passengers.

Image source: TheStreet

Royal Caribbean Knows Its Audience

While some cruise passengers live locally and can drive to the ports, many fly in and have to stay at hotels. Some also want to extend their stays in the port cities after their cruises end. Having to book those stays on your own adds hassle. This extra step in booking a vacation is a pain point.

In addition, booking air and hotel travel on your own (or through a travel agent) leaves you vulnerable to problems. 

Air2Sea, for example, comes with guarantees as to what happens if your flight causes you to miss your cruise. The cruise line won't keep the ship docked to wait for you, but it can find ways to get you to the next port or book you on another ship.

Adding hotels to that mix simply gives would-be passengers more peace of mind along with the added convenience.

How Does Royal Caribbean's New Hotel Service Work?

Royal Caribbean partnered with Booking Holdings' (BKNG) Priceline on Royal Caribbean Hotels. The move offers "exclusive rates with thousands of hotels in every Royal Caribbean departure and arrival port, including those in the Caribbean, Europe, Asia-Pacific as well as North, South, and Central America."

The cruise line sometimes subsidizes airfares for customers booking via Air2Sea. It has not said whether it would be doing that with hotel rooms, but as a high-volume customer it's likely to be able to sometimes offer rates lower than those passengers would get if they booked directly.

Royal Caribbean explained the new offering in a news release:

Adventure seekers who have booked a Royal Caribbean cruise can seamlessly arrange hotel accommodations that are pre-filtered based on the number of travelers in their group, the sailing’s departure or arrival city, and dates. Options can also be further customized by preferences, such as the hotel rating, amenities, and specific location within the city. Whether planning a long-awaited vacation or an impromptu getaway, Royal Caribbean Hotels minimizes travelers’ time spent planning to maximize every moment of their memorable vacation.

It's important to note that Royal Caribbean can also essentially subsidize rooms during expensive travel periods. 

The company generally gets premium pricing for holiday cruises, for example, and it might make sense to ensure that customers feel comfortable spending that money without having to also spend big on a place to stay the night before.

"Royal Caribbean Hotels is now available to vacationers living in the U.S., Canada, and Mexico, and their travel advisors," the company added.

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